October 14, 2016

A unique partnership has been set up in the Netherlands in which four leading companies have made a longterm agreement to jointly source power from renewable energy projects. As part of this partnership, the first agreement is to buy power from a Windpark Krammer, established by two cooperatives with together 4,000 members in the province of Zeeland and the island of Goeree-Overflakkee. With this initiative the companies significantly contribute to deliver on the Dutch renewable energy target of 14% in 2020 that was agreed in the Dutch Energy Agreement for Sustainable Growth in 2013.

Amsterdam, the Netherlands – Royal Philips (NYSE: PHG, AEX: PHIA), AkzoNobel, DSM and Google are announcing today a new partnership to jointly buy renewable electricity to power part of their operations in the Netherlands. Faced with demanding goals to meet sustainability targets, the four companies formed this consortium two years ago, to explore market opportunities together. This represents a new approach for corporations to enter into renewable Power Purchase Agreements.

As a first step in their long-term collaboration, AkzoNobel, DSM, Google and Philips have agreed to source a total of 350.000.000 kWh a year from Windpark Krammer once it becomes operational in 2019. This is equivalent to the total annual consumption of 100,000 households. The agreement is both crucial for the funding of the windpark and for the sustainable ambitions of all four companies.

It’s the first time in the Netherlands that a group of multinational companies has teamed up with local citizens to create what is effectively a consumer-to-business energy partnership.

“As a recognized leader in the field of sustainability, the consortium offers a welcome opportunity for AkzoNobel to further increase its renewable energy use and continue finding new ways to do more with less. We are proud to be part of the future of energy sourcing,” said Knut Schwalenberg, director of AkzoNobel Nederland. “This partnership shows that innovation does not stop at product development. It also means finding new ways of working together and illustrates our commitment to becoming more sustainable. In addition, by supporting communities to create more green energy, we are helping our cities to become cleaner and more livable.”

“This is a unique ‘bottom-up’ collaboration that is a perfect fit for DSM as a company that has sustainability in the core of its strategy. In this case local citizens have taken the initiative to drive the development of local renewable capacity for themselves and a consortium of 4 large-scale energy users, including DSM. This bottom-up approach is an interesting, win-win model, because highly engaged individuals, industrial-scale users, windfarm developers and the national Dutch renewable target all benefit,” said Atzo Nicolaï, President DSM Netherlands. “Sourcing renewable electricity in this way will help us deliver on DSM’s global commitment to source at least half of our purchased electricity from renewable sources by 2025. To deliver on the Paris climate agreement goal of reducing the temperature increase to well below 2° Celsius, it is key that we join forces and build innovative partnerships like the one with Windpark Krammer.”

“We’re deeply committed to sustainability and are very happy to collaborate with three other leading multinationals to increase sustainable energy use in the Netherlands,” said Francois Sterin, director global infrastructure at Google. “Google has been carbon-neutral since 2007 and we are committed to powering 100% of our operations with renewable energy sources. And our data centre in Eemshaven will be powered with renewable energy from day one when we open it later this year.”

Hans de Jong, CEO Philips Benelux, said: “Philips has set ambitious goals for 2020 with our sustainability program ‘Healthy People, Sustainable Planet'. Carbon neutrality is an important goal of our operations. So, we strive to only use 100% renewable electricity. This agreement is another step in realizing this goal. Windpark Krammer gives us the opportunity to source wind energy for our operations, a novel approach. I am proud to have teamed up with fellow Industrial participants in this first-of-a-kind cooperation in Europe. It’s a perfect example of integrating circular economy principles.”

Tijmen Keesmaat, Managing Director of Windpark Krammer, added: “This is a great achievement. When we started working on the concept eight years ago, we did not foresee that we would be able to provide sustainable power not only to our members, but also to multinational companies. It is particularly great that we deliver directly to end users and that we cut out the middleman. This collaboration is energy transition on a complete new level and we are proud that we can play an important role in the new energy landscape.

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About Royal Philips

Royal Philips (NYSE: PHG, AEX: PHIA) is a leading health technology company focused on improving people’s health and enabling better outcomes across the health continuum from healthy living and prevention, to diagnosis, treatment and home care. The Company leverages advanced technology and deep clinical and consumer insights to deliver integrated solutions. The Company, headquartered in the Netherlands, is a leader in diagnostic imaging, image-guided therapy, patient monitoring and health informatics, as well as in consumer health and home care. The Company’s health technology portfolio generated 2015 sales of EUR 16.8 billion and employs approximately 69,000 employees with sales and services in more than 100 countries. News about the Company can be found at www.philips.com/newscenter.

About AkzoNobel

AkzoNobel creates everyday essentials to make people’s lives more liveable and inspiring. As a leading global paints and coatings company and a major producer of specialty chemicals, we supply essential ingredients, essential protection and essential colour to industries and consumers worldwide. Backed by a pioneering heritage, our innovative products and sustainable technologies are designed to meet the growing demands of our fast-changing planet, while making life easier. Headquartered in Amsterdam, the Netherlands, we have approximately 45,000 people in around 80 countries, while our portfolio includes well-known brands such as Dulux, Sikkens, International, Interpon and Eka. Consistently ranked as a leader in sustainability, we are dedicated to energizing cities and communities while creating a protected, colourful world where life is improved by what we do.

About DSM – Bright Science. Brighter Living™

Royal DSM is a global science-based company active in health, nutrition and materials. By connecting its unique competences in life sciences and materials sciences DSM is driving economic prosperity, environmental progress and social advances to create sustainable value for all stakeholders simultaneously. DSM delivers innovative solutions that nourish, protect and improve performance in global markets such as food and dietary supplements, personal care, feed, medical devices, automotive, paints, electrical and electronics, life protection, alternative energy and bio-based materials. DSM and its associated companies deliver annual net sales of about €10 billion with approximately 25,000 employees. The company is listed on Euronext Amsterdam. More information can be found at www.dsm.com.

About Google

Google's mission is to organize the world's information and make it universally accessible and useful. Through products and platforms like Search, Maps, Gmail, Android, Google Play, Chrome and YouTube, Google plays a meaningful role in the daily lives of billions of people and has become one of the most widely-known companies in the world. Google is a subsidiary of Alphabet Inc. Google is committed to powering 100% of its operations with clean energy and have signed contracts to purchase nearly 2.5 GW of renewable energy, making Google the largest corporate renewable energy purchaser in the world.

About Royal Philips

Royal Philips (NYSE: PHG, AEX: PHIA) is a leading health technology company focused on improving people’s health and enabling better outcomes across the health continuum from healthy living and prevention, to diagnosis, treatment and home care. Philips leverages advanced technology and deep clinical and consumer insights to deliver integrated solutions. The company is a leader in diagnostic imaging, image-guided therapy, patient monitoring and health informatics, as well as in consumer health and home care. Philips’ wholly owned subsidiary Philips Lighting is the global leader in lighting products, systems and services. Headquartered in the Netherlands, Philips posted 2015 sales of EUR 24.2 billion and employs approximately 104,000 employees with sales and services in more than 100 countries. News about Philips can be found at www.philips.com/newscenter.

About Windpark Krammer

Windpark Krammer is the largest citizen’s initiative of the Netherlands. The more than 4,000 members of the cooperatives and Zeeuwind and Deltawind have taken the initiative to develop this windpark on and around the Krammersluizen in the Dutch province of Zeeland. The park produces enough energy to supply more than 100,000 households with green electricity. The park is truly by and for the region. Local sustainable initiatives are supported with the Wind Fund and the (sub) contractors involve local subcontractors during construction.